GLOSSARY OF TERMS

One of our most important on going goals is to constantly look for better ways to improve communication
with the industry, local governing bodies, and other interested parties.

This alphabetical glossary of terms is intended as another step forward. It is intended to provide
a simple reference for the most freqently asked questions and term definitions.

This glossary of terms is to be used only as a guide and not as a complete or final authority.
Please check with us if you need a legal opinion or interpretation of the law or rules. This is not inteded to be
used as a basis for legal positions.

In case of any discrepancies between this glossary of terms and the Nebraska Liquor Control Act,
Rules or Regulations, the actual statutes and rules shall prevail.

Advertising - and Signs - are allowed through any media (newspapers, radio,
and television). There are no restrictions as to price. Shall not contain any statement, illustration, design, device or
representation that is false or misleading statements, lewd or obscene pictures or language, minors, or objects that would
suggest the presence of a minor.

Alcohol - distillation of any fermented liquid, whether rectified or diluted, whatever the origin thereof, and shall
include synthetic ethyl alcohol, shall not include denatured alcohol or wood alcohol.

Alcoholic liquor - includes alcohol, spirits, wine, beer, and any liquid or solid, patented
or not, containing alcohol, spirits, wine, or beer and capable of being consumed as a beverage by a human being. Including
confections or candy containing more than one- half of one percent alcohol and wine inteded for use by any church or
religious organization for sacramental purposes. Shall not include flavoring extracts, syrups, medicinal, mechanical,
scientific, culinary, or toilet preparations or food products unfit for beverage purposes.

Application hearings - these are usually held at the local level. However, if the Commission
discovers a statutory reason and if the local governing body has approved, this hearing will be before the Liquor Control
Commission.

Beer - a beverage obtained by alcoholic fermentation of an infusion or concoction of barley
or other grain, malt, and hops in water and shall include, but not limited to, beer, ale stout,lager beer, porter,
and near beer.

As a reminder, it is unlawful to sell or offer for sale in this state any BEER to which has been added any
spirit or wine and/or to permit any person to add any spirit or wine to any BEER on the premise of the licensee.

Bottle club - allows on premise sale and consumption of alcoholic liquor inside corporate
limits of cities, towns or villages where liquor by the drink has not been voted in on a general ballot OR outside the
corporate limits of ciites, towns or villages.

Brand - alcoholic liquor identified as a product of a specific manufacturer.

Campus - shall mean any buildings owned, leased, or otherwise under the jurisdiction and control of the administration
of college or university, which are used as a place for the education of students or for student living quarters, and the
grounds surrounding such buildings.

Campus - University of Nebraska-Lincoln -
as it pertains to the southern boundary of the main campus of the University of Nebraska- Lincoln, shall mean the
south right-of-way line of R Street and abandoned R Street from 10th to 17th streets.

Cancel - to discontinue all rights and privileges of a license. The licensee may
re-apply for a license after a thirty day waiting period.

Candy - or confections which contain alcohol of more than one-half of one percent
alcohol shall be considered alcoholic liquor.

Catering license - this license allows retail licensees, holding a Class C, D, I or L license, to deliver, sell,
or dispense any alcoholic beverage for consumption (on premise only) at a location as designated on a special
designated license.

Church - a building owned by a religious organization, used primarily for religious
purposes, and having tax- exempt status.

Citation hearing - These can be held by the Local Governing Body or at the Commission
level. These are administrative hearings, not a court of law. The Assistant Attorney General assigned to the Liquor
Control Commission acts as prosecutor and presents the evidence. The licensee may be represented by counsel and the
Commissioners determine guilt or innocence. If found guilty, or if a plea of guilty is entered, the Commission sets
the penalty.

Closed/Non-Operationsl Retail License - When a license has been issued and the licensee
is not able to operate the license for a total of thirty continuous days or a total of sixty days, the licensee
shall be subject to an "Order of the Commission" directing that the licensee show cause why the license should not
be cancelled for non-use. A hardship may be applied for, for a period not to exceed the end of the licensed year,
for which the license is issued.

Closing hours - no alcoholic liquor may be sold or dispensed between 1:00 a.m. and
6:00 a.m. (Unless further restricted by local ordinance). All drinks and drink containers, for the purpose of
consumption, must be removed by 1:15 a.m. (or 15 minutes after the closing hour). No alcoholic liquor may be
consumed on the licensed property between 1:15 a.m. and 6:00 a.m. by anyone, including the owner/ employees. (See Sunday Sales)

Club - shall mean a corporation which is organized under the laws of this state, not
for monetary profit, solely for the promotion of some common object other than the sale or consumption of alcoholic
liquor.

College - shall mean a technical community college, a state college, or a private
college approved by the Nebraska Coordinating Commission of Postsecondary Education.

Coupons - It is permissible for a retail licensee to offer coupons which would
contain a percentage discount, a fixed dollar discount, free drinks, or a special price. Coupons may be made
available through news media or a general resident mailing service. Manufacturer's or wholesaler coupons may NOT be
redeemed by a licensed retailer and must be strictly between consumer and the manufacturer or a clearing house.

Retailers may also distribute gift certificates provided the certificates are redeemed in full at the time the
consumer presents it to the retailer. No credit can be carried after the initial redemption of the certificate.

Coupons, Wholesaler involvement - A wholesaler may not participate in any promotion,
including the distribution of promotional materials furnished by the manufacturer.

Commission - shall mean the Nebraska Liquor Control Commission.

Containers - all original containers with alcoholic liquors, sold or offered for sale
in this State, shall be constructed of such material and be in such form as has been generally found and recognized
by State and Federal Enforcement Officers to be safe, sanitary and in no manner prejudicial to the health and
interest of the public.

Credit to retail consumer - retailers cannot allow customers to charge alcoholic
beverages or use a passbook unless: 1. A national credit card is used (a licensee's owned credit card is not
acceptable). 2. In a club holding a class c license (club means a nonprofit corporation including a restaurant).
3. in a restaurant with the purchase of a meal. 4. as a guest of a hotel.

Alcoholic beverages may be purchased through the use of a national credit card. A licensed retailer may not
charge alcoholic beverages on a credit card issued from their establishment.

Credit, wholesaler to retailer - No credit can be extended by a wholesaler to a
retailer for beer. Thirty days (30) may be given for distilled spirits and wine from date of the invoice.

Customers bringing their own alcoholic beverages on premise - There is no state statute
which prohibits a customer from bringing their own alcoholic beverage into a licensed establishment. The licensee
may, as a matter of business policy, allow or disallow this practice.

If a licensee chooses to allow such practice, alcoholic liquor may be brought in, if the premise is licensed for
such liquors. (i.e., IF it's for the purpose of consumption the premise must be licensed for on-sale consumption. No
wine on a beer only premise and no spirits if the premise is only licensed for the consumption of beer and wine.)
Once the bottle(s) is brought into the premise and opened for consumption, it must be consumed or the remaineder
left when the costumer leaves, since an opened container of alcoholic beverage may not be removed from a licensed
premise. Additionally, a licensee must remember that any alcoholic beverage left behind must be disposed. It may not
be put into your liquor inventory for resale.

Disposal of inventory - In a bankruptcy, or other court action, or circumstances, written
permission may be obtained from the Liquor Control Commission to sell the inventory back to the wholesaler, auction the
inventory, or destruction of the inventory.

Disturbance - includes brawl, fight or other activity which may endanger the patrons,
employees, law enforcement officers, and members of the general public within a licensed premise or an adjacent
related outdoor area.

Drive-In window sales - The concept of a "Drive-in Window" or "Curb Service" is not
permitted by the Nebraska Liquor Control Act. A sale cannot be made to anyone within any motor vehicle. There is an
exception for sales to handicapped persons in a motor vehicle displaying a current handicapped license plate issued
by the Department of Motor Vehicles. Licensees should provide handicapped parking.

Drop shipments - beer products ordered between BEER WHOLESALER and BREWERY and then
shipped DIRECTLY from the BREWERY to a LICENSED RETAILER versus the beer wholesaler.

Election day - There is no state law prohibiting the selling of alcoholic beverages
on election day. However, there may be an ordinance in the city or county laws. The city or county attorneys or
clerks should be able to provide that ordinance.

Employer responsibility - The licensee is responsible for the acts of employees even
if their acts are contrary to specific instructions. It is the licensee's responsibility to monitor the activities
and performance of employees.

Excise tax - Excise taxes are paid by the wholesalers on all alcoholic beverages.
The money is collected by the Nebraska Liquor Control Commission and sent to the State Treasurer and deposited to
the State's "General Fund", where it is used to help pay the expenses of state government.

Farm winery - any enterprise which produces and sells wines produced from grapes,
other fruit, or other suitable agricultural products of which at least seventy-five percent is grown in this state.

Fingerprints - If you are planning to apply for another license, you will need to be
fingerprinted if it has been more than one year. In a corporation anyone holding MORE than 25% of the stock, the
CEO, the manager and their spouses need to be fingerprinted.

Fire Marshal, State - The Commission (per State Statutes) has the State Fire Marshal
approve all licensed premises for fire safety, before any license is issued.

Generic label - a label which is not protected by a registered trademark, either in
whole or in part, or to which no person has acquired a right pursuant to state or federal statutory or common law.

Guest - shall mean a patron of a club, who comes to the club at the invitation of a
member and who uses the club's services or facilities while accompanied by that member. Nothing herein shall prevent
clubs from entering into reciprocity agreements to enable a member of one club to use the services or facilities of
another club.

Hotel - any building or other structure which is kept, used, maintained, advertised,
and held out to the public to be a place where food is actually served and consumed and sleeping accommodations are
offered for adequate pay to travelers and guests, whether transient, permanent, or residential.

Identification for age to purchase - The Nebraska Liquor Control Act restricts the
types of identification which may be used for determining age to purchase alcohol. The following ARE NOT acceptable
forms of identification: The most common form of identification is college I.D. cards, (usually do not contain date
of birth), mail order I.D. cards (usually contains a "snap-shot" photograph and undocumented facts), unfamiliar
out-of-state I.D. cards, and birth certificates (easily altered) The law provides that only the following five
forms of identification are acceptable in Nebraska: only current unexpired documents may be accepted. 1. operators
license (a driver's license from any state. Nebraska operator's license has a photograph with a blue background if
the license is issued before age 21.) 2. Nebraska state identification cards (issued after January 1991). These are
issued with the same security as a driver's license through a license examiner, supporting documentation, expiring
every four years. The photograph has blue background if issued before age 21. 3. military identification. 4.
immigration cards. 5. passport.

Inspection - The Liquor Control Act requires inspections of licensed establishments.
The purpose is to ensure that liquor laws are being followed. The Nebraska State Patrol performs the enforcement
of the Liquor Control Act and routinely visit liquor establishments. They determine if the liquor license is being
displayed, as well as the required pregnancy and minor posters. To minimize concern and interruption of business,
these inspections are genereally conducted during daytime business hours. However, they may be conducted at anytime.
Local authorities and other state agencies, such as Fire Marshals may also do inspections at any time to see that
state and local laws are being followed.

Intoxicated person - No licensee, partner, principal agent or employee of any licensee
can sell, serve, or furnish alcoholic beverages or allow possession of alcoholic beverages on the licensed premise to
any person who is or has become intoxicated and/or incapacitated by the consumption of alcoholic beverages and/or
other drugs or who is mentally incapacitated.

Labels - attached to all original containers or packages of alcoholic liquor offered
for sale in this state shall set forth inplain and legible print in the English language: 1) quantity; 2) grade
and quality of such liquors together with their alcoholic content (except beer); 3) age of such liquor (
except beer and wine) if required by federal regulations; 4) if the liquor be a blended product, the labels shall
include the other ingredients contained in such blended product.

Labels shall not contain any false or misleading statements or representations. The label of every container of
beer shall set forth the name and address of the brewer.

Leasing of license - the person who operates the business must be the actual named
licensee to whom the licensed was issued. It is a violation for a licensee to lease or allow another to operate
on their license.

Legal age - a person must be twenty-one years of age to legally purchase and/or
consume alcoholic liquors on a licensed premise.

Licensees shall not send a minor employee to pick up and transport alcoholic beverages from the wholesaler to
the licensed premise.

Persons nineteen years of age or older may stock shelves, sell and dispenseliquor. They may be a bartender,
waiter/waitress or sales clerk. nineteen year olds may carry wine, beer or liquor from an establishment licensed for
off-sale, in the course of their employment, WITH an adult accompanying them to the customer's vehicle.

Sixteen year olds may work as waiter/waitresses or bus tables in the removing and disposing of alcoholic liquor
containers in any restaurant, club, hotel, or similar organization. Sixteen year olds may handle beer containers,
but ONLY BEER, in the course of their employment in grocery store, which would also include convenience-type stores,
such as, stocking coolers or shelves, and may carry beer from the grocery store for the customer when accompanied
by an adult. Sixteen year olds MAY NOT sell or serve any alcoholic liquors.

License, displayed - every liquor license shall be framed and hung in plain view in a
conspicuous place on the licensed premise.

License effective date - although the Nebraska Liquor Control Commission "issues" the
license, we do so to the local governing body, who in turn, collects the appropriate fees. The license, however, is
not effective unless ALL THREE of the following are met: 1. Payment of license fees. 2. Physical possession of the
license. 3. The effective date of the license.

License fees - collected by the city or village treasurer shall be credited to the
school fund of the district. License fees collected by the country treasurer shall be credited to the school fund
of the county.

License fees, occupation tax - the local governing body MAY TAX, by ordinance, in
addition to the license fee, an additional amount up to twice the amount of the license fee. The revenue collected
from the tax stays in the city or village. (the license fee collected, at the local level, goes to the school fund
of the district).

License fees, prorated - there is no provision in the Nebraska Liquor Control Act to
prorate a license fee.

Licensed premise - one location shall be described in each license. Areas used for the
sale, consumption or storage of alcoholic beverages are described on the license. At the time of filing the original
application, a sketch with dimensions, must be included identifying the areas to be licensed. The application must
be approved by the local governing body.

Limited partnership - must have a general partner as the primary partner, and
complete the partnership portion of the application for license. If this general partner is a corporation, a
manager's application must be included. General partners and spouses must sign the application and meet all
eligibility requirements. (Spouses' verification may be waived upon signing the affidavit indicating no interest
in the business). If the general partner is a corporation, the CEO and manager must sign the meet all eligibility
requirement. Stockholders holding over 25% of the shares must be included. The Corporation portion of the
application must be completed. If limited partners are individuals, date of birth, social security number and
addresses are required. If limited partners are corporations, the CEO must list date of birth, social security
number and address. If the corporation has stock held by another corporation, an organizational chart must be filed
listing all shareholders owning more than 25% of the stock of the corporation. When the general partners are
individuals, one partner must meet residency requirements.

Liquor Control Commission - the commission was established in 1935 by the legislature
to regulate all activities involving alcoholic beverages, generate revenue through an excise tax, encourage
temperence, promote the health, safety and welfare of Nebraska citizens, establish rules, assist local governing
bodies, and recommend statutory chages through the Governor to the legislature.

There are three Commissioners, appointed by the Governor, one of whom is designated as the Chair. The
Commissioners are appointed to a six year term and must represent different political parties, and the three
congressional districts.

Long form - This is a "slang" term for the actual application process. When a license is
"long formed" by the Commission, which it may do at any time, the licensee must start over on the licensing process. The
Commission shall require a licensee to submit an application, if requested in writing by the local governing body.

Manager - a person appointed by a corporation to oversee the daily operation of the
business licensed in Nebraska. A manager shall meet all requirements of the act as though he or she were the
applicant, except for residency and citizenship. When you have a manager change you have sixty (60) days to notify
the Liquor Commission of this change. The new manager will need to fill out our manager form and they will also need
to be fingerprinted. A manager does not have to be a Nebraska resident or resident of the county.

Mandatory meeting - the commission may order any licensee to appear to discuss, in an
informal manner, any issue which is of concern to the Commission. Failure to appear before the Commission may result
in a suspension, cancellation or revocation of license, for not complying with a Commission Order.

Manufacture - to distill, rectify, ferment, brew, make, mix, concoct, process, blend,
bottle or fill an original package with any alcoholic liquor and shall include blending but shall not include the
mixing or other preparation of drinks for serving by those persons authorized and permitted in the act to serve
drinks for consumption on the premises where sold.

Manufacturer - every brewer, fermented, distiller, rectifier, winemaker, blender,
processor, bottler, or person who fills or refills an original package and other engaged in brewing, fermenting,
distilling, rectifying, or bottling alcoholic liquor, including a wholly owned affiliate or duly authorized agent
for a manufacturer.

Manufacturer, wholesaler, exclusive contract with retailer - this is an illegal
practice where an arrangement is made between the manufacturer or wholesaler and a retailer who agree not to sell
other products. Agreements between a manufacturer or wholesaler and county/fairs or rodeos (for a donation),
the fair/rodeo will agree to serve only the manufacturer's/wholesaler's product is also illegal.

Micro brewery - shall mean any small brewery producing a maximum of ten thousand
barrels of beer per year.

Minor - any person, male or female, under twenty-one years of age, regardless
of marital status.

Minor's identification book - it is recommended by law that any time identification is
requested, a written record must be made in a "separate book". The record must include the name and address of the
purchaser, the date of the purchase, a description of the identification used, and signature of the purchaser.

Minors, hours may be in licensed establishments - there is no state law governing the
hours that a minor may be in a licensed establishment. There may be a village, city or county ordinance governing
hours for minors.

Near beer - beer containing less than one-half of one percent of alcohol by volume.

Nebraska sales tax - all alcoholic beverages sold at the retail level are subject to
sales tax, this includes products containing less than 1/2 of one percent of alcohol by volume. The sales tax does
not have to be separately stated and collected from the customer on sales of alcoholic beverages which are consumed
on the premise of the retailer; for example, the selling price for a glass of beer can include the sales tax.

Non alcoholic beverage - if the beverage has any alcohol in it, even 1%. You have to
be twenty-one to purchase this beverage.

Non beverage user - every manufacturer of any of the products set forth and described
in subsection (4) of section 53-160, when such product contains alcoholic liquor, and all laboratories, hospitals,
and sanatoria using alcoholic liquor for non beverage purposes.

Non profit corporation - any corporation organized under
the laws of this state, not for profit, which has been exempted from the payment of federal income taxes.

Non profit licenses - a nonprofit license may be either a Class H or a Class C license.
A nonprofit Class H or C is restricted to consumption on the premise only and to members and guests only. There are
no off-sales privileges. A letter of exemption from the Internal Revenue Service must be filed with the Commission.
Membership cards and/or sign in sheets are not required by the Liquor Control Act.

Nude dancing - no person under the age of nineteen is to be employed to provide
sexually explicit entertainment; nor shall any person under the age on nineteen be employed or permitted within a
licensed premise while unclothed in any sexually explicit manner. You need to check with your local governing body
also to see if there are any local ordiances or restrictions also.

Open containers after hours - Nebraska Statutes and Nebraska Liquor Control Commission
Rules and Regulations prohibit open containers of alcoholic liquor from remaining in possession or control of
persons for purposes of consumption after 1:15 a.m.; or, in the event of a local ordinance or resolution providing
for an earlier closing, not more than 15 minutes after such closing hour. This law pertains not only to customers
of a premise, but to EVERYONE. No licensee, employee, or family member(s) or friend(s) of the licensee or employee,
is permitted to consume alcoholic liquor after such closing hours. The fact that the front door was locked, the
premise was closed to the general public, and "we were just cleaning up" does not make it legal. Licensees should
make every effort to assure that all of their employees are aware of this state statute and commission rule.

Original package - any bottle, flask, jug, can, cask, barrel, keg, hogshead, or other
receptacle or container used, corked or capped, sealed, and labeled by the manufacturer of alcohol liquor to contain
and to convey any alcoholic liquor.

Penalty in abeyance - allows the Liquor Control Commission to delay a
penalty for a violation (in abeyance) for a period of time allows the Commission to scrutinize the management,
premises, and training of employees of the licensee.

Pregnancy warning sign - this sign is required by law to be posted in a place easily
seen by the customers of all retail establishments. The sign is available free to all licensed retailers from the
Liquor Control Commission, and must read as follows: Warning: Drinking alcoholic beverages during pregnancy can
cause birth defects.

Pricing - The Nebraska Liquor Control Act and the Nebraska Liquor Control Commission
Rules and Regulations do not regulate pricing of alcoholic beverages at the retail or wholesale level. There may be
federal laws pertaining to equal treatment, i.e., if a wholesaler gives a discount to a retailer, that offer must be
extended to other retailers. Please contact the Federal Bureau of Alcohol, Tobacco and Firearems (BATF) for further
information.

Private label - a label which the purchasing wholesaler, retailer, or bottle club
licensee has protected, in whole or in part, by a trademark registration.

Proof (Percentage of Alcohol) - in distilled spirits, the alcohol content is indicated
in "Proof" which is equal to twice the actual percentage of alcohol. For example, a distilled spirit which is shown
to be 60 proof contains 30% alcohol. The alcoholic content of of wine is indicated in percentage by volume. This
gives the actual percentage of the beverage that is alcohol. For beer and other malt alcoholic beverages, although
the percentage of alcohol is not show on the label, the alcohol content is usually given in percentage of alcohol
by weight. This percentage number will usually appear to be slightly less than it would if the alcohol content were
shown by volume.

Proof gallon - federal liquor tax is based upon 128 ounces per U.S. Gallon.

Public presentations - if any person wishes to appear before the Commission, they
should call the Commission office and make arrangements to be placed on the agenda. Any person may appear before
the Commission prior to the regularly scheduled meeting.

Record retention and inspection - Licensees must retain and preserve records of all
business receipts, disbursements and funds used in connection with the licensed business for a period of three
years. Retailers must retain invoices and records involving the purchase of alcoholic liquor for the past year,
and make them available for inspection upon demand to the Commission or its agents. Invoices may be retained at
corporate headquarters. Records must be made available upon demand. Employees should be instructed as to where such
records are located and at least one employee on duty at all times should have access to them. If there are a number
of licenses with a common ownership, business records may be housed at a central location within Nebraska.

Renewals - Licenses must be renewed annually. All non Class C licenses run from May 1
through April 30 of each year. All Class C licenses run from November 1, through October 31, of each year. All
licenses must be renewed prior to the expiration date. When the commission receives the signed renewal form swearing
to that fact, and a $30 registration fee; if you have a cater's license it would be an additional $75 and an
additional $150 if renewing a Class D license, the license is then renewed and is sent to the local city or county
clerk for collection of the license fee.

Residency requirements - a licensee, who is required to be a county resident must be
a registered voter in the county where the license is to be located and must, if a vehicle is owned, have at least
one such owned vehicle registered in the county where the license is located. Licensees are required to do two of
the following; own or rent property in the county, have a mailing address in the county, reside in the county, have
children enrolled in schools in the county, use county address on tax returns.

Restaurant - any public place which is kept, used, maintained, advertised, and held
out to the public as a place where meals are served and where meals are actually and regularly served, which has no
sleeping accommodations, and which has adequate and sanitary kitchen and dining room equipment.

Retail application time frame - it takes approximately 45-60 days for processing a new
application including the local governing body decision, approval by the State Fire Marshall, sanitation inspection
by the State Agricultural Department and State Patrol Investigation.

Retail corporate chain purchases - a retail corporate entity may purchase wine and spirits from a Nebraska Wholesaler for several retail stores within the corporate chain to take advantage
of quantity discounts. However, the products must be invoiced to specific stores and delivered only to the specific
stores. If the product is classified as a beer or malt beverage, payment if required at the time of delivery by the
wholesaler. Products classified as a wine or spirit, the payment may be delayed for thirty days.

Retail licensee, deceased - if the license issued is for an individual and the
licensee dies, then a personal representative must be appointed by the court. If the license is a partnership,
the remaining partner(s) may operate. If the license is a corporation, any existing stockholder may operate. If
the license would have expired within two months following the death of the licensee, the personal representative
may renew the license for one year.

Retail return of product to wholesalers - products returned to wholesalers by
retailers should not be accepted by the wholesaler unless all tags or other pricing devices have been removed.
All products returned to wholesale licensees shall be entered into floor inventory with proper internal matching
book entries. All products received at wholesale dock shall be fully accounted for. Retailers purchasing and
receiving product from a wholesaler bearing another retailers price tag may trigger a citation. This practice deters
auditing efforts in regulating and enforcing statutes and rules of the commission.

Retailer - a person who sells or offers for sale alcoholic liquor for use or
consumption and not for resale in any form except as provided in section 53-175.

Retailer to Retailer sales - It is illegal for a retailer to purchase alcoholic
beverages from anyone other than a Nebraska licensed wholesaler.

Revoke - to permanently void and recall all rights and privileges of a license.

Sales of twenty gallons or more - commission rule requires the registering of the
sale of alcoholic beverages in an amount of 20 gallons or more; for example, one-half barrel is 15.5 gallons, 10
cases or more of beer is over 20 gallons.

Sales taxes - is paid by retailers on low alcoholic products when sold to the
consumer, since no excise tax is collected by the state on these products. According to the Nebraska Department
of Revenue, sales tax is required on ALL alcoholic products that are controlled by the Nebraska Liquor Control
Commission.

Sampling - consumption on the premises of a retail licensee of not more than five
samples of one fluid ounce or less of alcoholic liquor by the same person in a twenty-four hour period.

School - shall mean a building which is used as a place for the instruction of pupils
in elementary or high school grades, and which is owned, leased, or otherwise under the jurisdiction and control of
a public school district or of the administration of a private, denominational, or parochial school accredited by
the State Board of Education.

Sell - to solicit or receive an order for, to keep or expose for sale, or to keep with
intent to sell.

Sell at retail - sale for use or consumption and
not for resale in any form except as provided in section 53-175.

Shipper license - allows the holder to ship alcoholic liquors directly to, and only
to, a holder of a Nebraska Wholesale license issued by the Commission. A shipper licensee may be a manufacturer,
or a duly authorized agent for a manufacturer.

Show cause hearings - These are at the Liquor Control Commission level and are usually
for the purpose of determining why a license should not be cancelled, suspended or revoked for such reasons as
failure to operate, not having an approved manager (corporations), or failure to comply with a commission order,
or falsifying an application for a license or manager.

Special designated license - a "Special Designated License" is required whenever there
is a public event involving the selling or accepting donations in the consuming of alcoholic beverages. Applications
for a special designated license may be obtained from the Nebraska Liquor Control Commission. All requests for
special designated license must have approval from their local governing body. Completed applications for a special
designated license are sent to the Nebraska Liquor Control Commission. A charge of $40 per day per event must
accompany the application. Requests for special designated licenses are limited to 6 events per year. If you are a
licensed retailer with a catering license there are no charges per event and you have no limits on the number of
events you cater. However, it is required that the commission have your application for the events 21 days prior to
the event if you have a catering license.

Spirits - any beverage which contains alcohol obtained by distillation, mixed with
water or other substance in solution, and shall include brandy, rum, whiskey, gin or other spirituous liquors and
such liquors when rectified, blended, or otherwise mixed with alcohol or other substances.

Stockholder change - a transfer of outstanding and issued stock of more than 5% or
less than 25% in a corporation holding a license, shall be communicated to the commission within 10 days with an
affidavit that such person is qualified to hold a license as an individual in accordance with the standards set
forth in the Nebraska Liquor Control Act, other than residency or citizenship.

The sale or transfer of the majority (51%) of outstanding an issued stock shall constitute a change of
ownership which requires a new license application. If the majority is transferred to an existing stockholder,
an affidavit is required listing the number of shares and verification that the stockholder meets the standards
established in the Nebraska Liquor Control Act, other than residency and citizenship, a new application for a
license is not required.

Sunday Sales - (other than non-profit organization) Alcohol sales
are prohibited unless permitted by local ordinances. Local ordinances may permit: * Beer or wine to be sold "on" or
"off" sale after 6:00 a.m. Sundays. * Spirits to be sold "on" or "off" sale after 12:00 noon SundaysNon-profit organizations may sell or dispense "on" sale alcohol after 12:00 noon.

Suspend - to cause a temporary interruption of all rights and privileges of a license.

Suspension/election to pay fine - the Nebraska Liquor Control Commission has the power
to suspend, cancel or revoke a retail licenee, if suspended by the commisison, an option of electing to pay a fine
(cash penalty) in lieu of suspending sales of alcoholic liquor for the designated period. The cash penalty must also
be accompanied by a signed election form furnished by the commission, and must be received by the commission one
week before such suspension is ordered to commence. If an election and cash penalty has not been received by the
commission by the close of business one week before such suspension is ordered to commence, then the licensee must
close during the period of suspension. Elections and cash penalties received late shall be void and returned to the
licensee. The law does provide that if you choose to take the suspension, you may open for "other business" on the
suspension days.

Temporary agency agreement - allows someone other than a licensee to operate a
business holding a liquor license if: 1) formal application on file with the Commission; 2) agency agreement
filed with Commission; 3) licensee must maintain a possessory interest in the property in the form of a lease,
use permit or license; 4) agents may be paid a specific agency fee; 5) agreements may not exceed 120 days.

Tied-house statute - used to describe a mutual interest between a producer or
wholesaler of alcoholic beverages and a retailer of alcoholic beverages.

Trade name - operating trade name (dba, doing business as).

Two fers, upside down drinks, unlimited quantity of alcoholic beverages for single price - The Nebraska Liquor Control Commission prohibits licensees from selling or serving, for on premise consumption, unlimited
quantity of beer, wine or spirits at a specific price. In addition, "two-fers" are prohibited. The rule states
"No licensee shall sell or serve two or more drinks containing beer, wine or spirits to a person for that person's
consumption on the licensed premises for once price. A pitcher shall not be considered a drink, however, no licensee
shall sell two or more pitchers for one price."

Wholesaler - a person importing or causing to be imported into the state or
purchasing or causing to be purchased within the state alcoholic liquor for sale or resale to retailers licensed
under the act.

Wholesaler, beer invoice date vs receipt of product - the state excise tax must be
paid on the invoice date and not the date the product is actually received into the ware house.

Wine - alcoholic beverage obtained by fermentation of the natural contents of fruits
or vegetables, containing sugar, including such beverages when fortified by the addition of alcohol or spirits.

Wine gallons - name given by the alcoholic beverage industry to an ordinary liquid
gallon (128 fluid ounces).